With whole of market access we really do have our pick when it comes to lenders. So how do we decide which one to use? Chris Longhurst looks at Foundation Home Loans’ key features and explains when he might approach this lender for finance.
Unlike many lenders who are firmly in one camp or another, Foundation’s offering tends to straddle both mainstream and specialist lending. If that sounds a bit vague, here are the elements which, in my opinion, really make them worth considering.
No minimum income requirement…
Traditional lenders will insist on seeing a P60 and three pay slips or two years’ HMRC paperwork to prove a certain level of income… well, not Foundation.
Foundation does not require borrowers to have a minimum amount of annual income. Additionally, income is considered from any legal source – employed, unemployed, buy to let to name a few. All Foundation requires is:
- 3 months’ bank statements to show good conduct
- A good credit profile – they don’t even credit score!
It is worth noting though that they will have an individual underwriter look at the facts, but even if you’ve had minor blips in the past they may still consider you.
Fair lending to limited companies…
Following the recent and potentially significant changes to the treatment of income tax in the buy to let world, we have seen a substantial increase in the number of purchase applications being received in a limited company name – now accounting for 63% of all purchase applications.
Foundation is more than happy to lend to SPV limited companies and what’s even better is they offer the same rates to both SPVs and individual applicants. The only real difference is an additional £500 completion fee when the corporate structure is preferred.
They don’t just deal with spring chickens…
We salute any lender which accepts individual applicants up to the age of 85 and wait for it… borrowing through a corporate vehicle? Well, there is no age restriction for you!
No restriction on size…
From the size of your property portfolio, to the size of your studio flat, Foundation doesn’t restrict. It will allow you to have up to a maximum of 10 loans with them to a value of £1,000,000, but there is no restriction when it comes to landlords’ borrowing with other lenders.
It is also extremely rare to find a lender that doesn’t impose a minimum floor area on a studio flat!
As highlighted above Foundation is very useful across a range of areas. It is an intermediary only lender, which means landlords must use a broker for access, so for more information on rates (which were reduced today, coincidentally) and lending criteria do give me a call on 01732 471607.
14th September 2016